FAIR VALUE MEASUREMENT

12 Months Ended

Dec. 31, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT

The estimated fair and carrying values of the Company’s total debt were $2,037 million and $2,135 million, respectively, at December 31, 2024. At December 31, 2023, the estimated fair and carrying values were $2,018 million and $2,118 million, respectively. The fair value of long-term debt is determined by discounting future cash flows using interest rates available at December 31, 2024 to companies with similar credit ratings for issuances with similar terms and maturities. It is considered a Level 2 fair value measurement for disclosure purposes.

Assets and liabilities measured at fair value on a recurring basis

The Company’s financial assets and liabilities set forth by level within the fair value hierarchy that were accounted for at fair value on a recurring basis were as follows:

	Year Ended December 31, 2024
(in millions)	Total		Level 1		Level 2		Level 3
Assets
Cross currency interest rate swaps	$	18	$	—	$	18	$	—
Foreign exchange forward contracts	18		—		18		—
Total assets	$	36	$	—	$	36	$	—
Liabilities
Interest rate swaps	$	21	$	—	$	21	$	—
Foreign exchange forward contracts	9		—		9		—
Contingent considerations on acquisitions	4		—		—		4
Total liabilities	$	34	$	—	$	30	$	4

	Year Ended December 31, 2023
(in millions)	Total		Level 1		Level 2		Level 3
Assets
Cross currency interest rate swaps	$	8	$	—	$	8	$	—
Foreign exchange forward contracts	8		—		8		—
Total assets	$	16	$	—	$	16	$	—
Liabilities
Interest rate swaps	$	28	$	—	$	28	$	—
Foreign exchange forward contracts	56		—		56		—
Contingent considerations on acquisitions	4		—		—		4
Total liabilities	$	88	$	—	$	84	$	4

Derivative valuations are based on observable inputs to the valuation model including interest rates, foreign currency exchange rates, and credit risks.

There were no transfers between fair value measurement levels during the years ended December 31, 2024 and 2023.

Assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (level 3)

The Company’s Level 3 liabilities at December 31, 2024 are related to earn-out obligations from acquisitions and licensing arrangements. The following table presents a reconciliation of the Company’s Level 3 holdings measured at fair value on a recurring basis using unobservable inputs:

(in millions)	Level 3
Balance, December 31, 2022	$	4
Payments	—
Balance, December 31, 2023	$	4
Payments	—
Balance, December 31, 2024	$	4

There were no additional purchases or transfers of Level 3 financial instruments in 2024 and 2023.